Who: Colgate-Palmolive
What: Colgate bought out Laser brand of toothpaste When: January 28th, 2015 Where: Myanmar Why: For Colgate to expand into a newly emerging market How: A 100 million (US) transaction Learning Strands: Brand acquisition, market research The one main learning strand touched upon in this article is the brand acquisition. In the article Colgate purchases a local toothpaste company in order to get the majority in the dental care market. Colgate has purchased the entire tooth care brand “laser” and is now supplying consumers in Myanmar under that brand. Market research also plays a major role in Colgate’s purchase of the local company. Myanmar has had sanctions lifted that were imposed due to political issues 60 years ago, with the reintroduction of this economy into the international market; companies such as Colgate have an opportunity to increase profits. In a report filed by The International Monetary Fund, Myanmar’s economy is expected to grow 8% annually in the years to come. Many companies have hired market analysis’s to determine whether or not it is wise to invest in this country. Summary: Colgate purchased the “Laser” brand toothpaste company in Myanmar. This acquisition was made through a transaction of 100 million (US). Colgate will continue to sell the “Laser” brand in Myanmar however they will also bring in other products such as sops and detergents owned by the Colgate Company. Colgate’s decision to purchase Laser was a result of the sanctions being lifted on Myanmar in 2012, the country was untouched by international companies for 60 years and when the sanction was lifted it brought with it an opportunity for foreign companies to invest. Personal Opinion: In my opinion i think lifting the sanction will help the countries economy as more businesses will expand to it. Resource: http://www.wsj.com/articles/colgate-buys-myanmar-toothpaste-brand-141451059 |